BM v MB & Ors (Financial Provision: Identification of Marital Assets/Avoidance of Disposition Order)

BM v MB & Ors (Financial Provision: Identification of Marital Assets/Avoidance of Disposition Order)

The husband’s transfers of shares and land to the trust and LLP were intended, at least in part, to defeat the wife’s claim for financial relief, triggering the statutory presumption under s.37 MCA 1973. The presumption was not rebutted. The court set aside the transactions unless the husband pays the lump sum without unwinding them. Marital assets were identified and apportioned, with deductions for non-marital contributions. The wife’s sharing claim exceeded her needs claim and prevailed. Both parties’ litigation conduct was criticised, with costs orders reflecting unreasonable negotiation.

Parties
Applicant: BM; First Respondent: MB; Second Respondent: GM; Third Respondent: X
Jurisdiction
England and Wales
Judgment Date
06 February 2025
Procedural Posture
Financial Provision / Avoidance of Disposition Order / Final Judgment
Outcome
Application to set aside transactions under s.37 MCA 1973 granted; financial remedy orders made.
Legal Topics
Financial Remedies, Marital Assets, Avoidance of Disposition, Section 37 MCA 1973, Asset Valuation, Costs
Family Law Financial Remedies Marital Assets Avoidance of Disposition Section 37 MCA 1973 Asset Valuation Costs

Case Brief

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Parties

BM

Applicant

MB

First Respondent

GM

Second Respondent

X

Third Respondent

Procedural Posture

Financial Provision / Avoidance of Disposition Order / Final Judgment

Legal Issues

  1. 1 Whether transactions carried out by the husband in April 2022 should be set aside under s.37 MCA 1973
  2. 2 What financial remedy orders should be made for the wife
  3. 3 Identification and classification of marital and non-marital assets

Ratio Decidendi

The husband’s transfers of shares and land to the trust and LLP were intended, at least in part, to defeat the wife’s claim for financial relief, triggering the statutory presumption under s.37 MCA 1973. The presumption was not rebutted. The court set aside the transactions unless the husband pays the lump sum without unwinding them. Marital assets were identified and apportioned, with deductions for non-marital contributions. The wife’s sharing claim exceeded her needs claim and prevailed. Both parties’ litigation conduct was criticised, with costs orders reflecting unreasonable negotiation.

Court Disposition

Application to set aside transactions under s.37 MCA 1973 granted; financial remedy orders made.

Orders

  • Transfer of 25% shares to trust and three parcels of land to LLP set aside unless lump sum paid without unwinding
  • Husband to pay wife lump sum of £5,379,167 (£500,000 within 3 months; balance per schedule)